HOUSE BILL No. 6251 November 5, 1998, Introduced by Rep. Profit and referred to the Committee on Tax Policy. A bill to amend 1933 PA 167, entitled "General sales tax act," by amending section 6 (MCL 205.56), as amended by 1998 PA 265. THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 1 Sec. 6. (1) Each taxpayer, unless otherwise provided by law 2 or as required pursuant to subsection (2), (3),or(5), OR (6), 3 on or before the fifteenth day of each month shall make out a 4 return for the preceding month on a form prescribed by the 5 department showing the entire amount of all sales and gross pro- 6 ceeds of his or her business, the allowable deductions, 7therefrom,and the amount of tax for which he or she is 8 liable. The taxpayer shall also transmit the return, together 9 with a remittance for the amount of the tax, to the department on 10 or before the fifteenth day of that month. The monthly return 11 shall be signed by the taxpayer or his or her duly authorized 06771'98 CSC 2 1 agent and, if prepared for the taxpayer by any other person, the 2 return shall so state, give the name and address of that person, 3 be signed by that person, and give the name ofhis or herTHAT 4 PERSON'S employer, if any. 5 (2) Before January 1, 1999, each taxpayer that had a total 6 tax liability, after subtracting the tax payments made to the 7 secretary of state under this act or the use tax act, 1937 PA 94, 8 MCL 205.91 to 205.111, or after subtracting the tax credits 9 available under section 6a, in the immediately preceding calendar 10 year of $720,000.00 or more on or before the eighteenth of each 11 month shall remit to the department, by an electronic funds 12 transfer method approved by the commissioner of revenue, an 13 amount equal to 95% of the taxpayer's liability under this act 14 for the same month in the immediately preceding calendar year, or 15 95% of the actual liability for the current month being reported, 16 plus a reconciliation payment equal to the difference between the 17 tax liability determined for the immediately preceding month 18 minus the amount of tax previously paid for that month. 19 (3) Beginning January 1, 1999, each taxpayer that had a 20 total tax liability after subtracting the tax payments made to 21 the secretary of state under this act or the use tax act, 1937 22 PA 94, MCL 205.91 to 205.111, or after subtracting the tax cred- 23 its available under section 6a, in the immediately preceding cal- 24 endar year of $720,000.00 or more shall remit to the department, 25 by an electronic funds transfer method approved by the commis- 26 sioner of revenue on or before the fifteenth day of the month, an 27 amount equal to 50% of the taxpayer's liability under this act 06771'98 3 1 for the same month in the immediately preceding calendar year, or 2 50% of the actual liability for the month being reported, which- 3 ever is less, plus a reconciliation payment equal to the differ- 4 ence between the tax liability determined for the immediately 5 preceding month minus the amount of tax previously paid for that 6 month. Additionally, the seller shall remit to the department, 7 by an electronic funds transfer method approved by the commis- 8 sioner of revenue on or before the last day of the month, an 9 amount equal to 50% of the taxpayer's liability under this act 10 for the same month in the immediately preceding calendar year, or 11 50% of the actual liability for the month being reported, which- 12 ever is less. 13 (4) The tax imposed under this act shall accrue to the state 14 on the last day of the month in which the sale is incurred. 15 (5) The commissioner of revenue, when necessary to insure 16 payment of the tax or to provide a more efficient administration, 17 may require the filing of returns and payment of the tax for 18 other than monthly periods. 19 (6) A TAXPAYER WHO IS A MATERIALPERSON SHALL INCLUDE THE 20 AMOUNT OF ALL SALES AND GROSS PROCEEDS FROM MATERIALS FURNISHED 21 TO AN OWNER, CONTRACTOR, OR SUBCONTRACTOR FOR THE PURPOSE OF 22 MAKING AN IMPROVEMENT TO REAL PROPERTY IN HIS OR HER RETURN FOR 23 THE MONTH IN WHICH THE MATERIALPERSON IS PAID FOR THE MATERIALS 24 BY THE OWNER, CONTRACTOR, OR SUBCONTRACTOR. AS USED IN THIS SUB- 25 SECTION, "MATERIALPERSON" MEANS A PERSON WHO FURNISHES MATERIAL 26 OR THE USE OF MACHINERY, TOOLS, OR EQUIPMENT; COMPRESSED GASES 27 FOR WELDING OR CUTTING; OR FUEL OR LUBRICANTS FOR THE OPERATION 06771'98 4 1 OF MACHINERY OR MOTOR VEHICLES, FOR USE IN MAKING AN IMPROVEMENT 2 TO REAL PROPERTY. 06771'98 Final page. CSC